Slide 1: Infection Prevention. For Life. 2022 Half Year Results
Infection Prevention. For Life. 2022 HALF YEAR RESULTS INVESTOR PRESENTATION Michael Kavanagh, CEO and President McGregor Grant, CFO and Company Secretary Nanosonics Limited | Half Year Results 2022 1
Slide 2: Disclaimer
DISCLAIMER This presentation is intended to provide a general outline only and is not intended to be a definitive statement on the subject matter covered in it. The information in this presentation, whether written or verbal, has been prepared without taking into account the commercial, financial or
Slide 3: Contents
I. FY22 HIGHLIGHTS CONTENTS II. INSTALLED BASE GROWTH III. FINANCIAL RESULTS REVIEW IV. REVISED NORTH AMERICAN SALES MODEL V. INVESTING FOR GROWTH – RESEARCH & DEVELOPMENT VI. OUTLOOK APPENDIX Nanosonics Limited | Half Year Results 2022 3
Slide 4: Our Mission
OUR MISSION We improve the safety of patients, clinics, their staff and the environment by transforming the way infection prevention practices are understood and conducted and introducing innovative technologies that deliver improved standards of care. Nanosonics Limited | Half Year Results 2022 4
Slide 5: H1 FY22 – Key Highlights
FY22 H1 H1 FY22 – KEY HIGHLIGHTS “Despite the significant and rapid increase in COVID-19 infections in I N ST AL LE D B ASE T O T AL R E V E N UE C API T AL R E V E N UE C O NSUMABLE S/ SE R V I C E R E V E N UE the first half of FY22 associated with the Delta and more 28,160 $ 60.6m $ 19.0m $ 41.6m
Slide 6: H1 FY22 – Key Highlights Contd.
FY22 H1 FY22 – KEY HIGHLIGHTS CONTD. H1 NORTH AMERICAN UPGRADES of 380 units up 124% compared with H2 FY21. PERFORMANCE OPERATING PROFIT BEFORE TAX of $3.3 million, compared with $0.2 million in prior corresponding period. FREE CASH FLOW for the half year was a net outflow of $3.8 million. CASH AND
Slide 7: Installed Base Growth
INSTALLED BASE GROWTH Nanosonics Limited | Half Year Results 2022 7
Slide 8: Global Installed Base H1
FY22 GLOBAL INSTALLED BASE H1 TOTAL INSTALLED BASE NEW INSTALLED BASE BY QUARTER 28,160 units 26,750 28,160 Global installed base grew 23,720 12% in the last 12 months 20,930 and 5% in last 6 months. 17,740 980 800 730 670 660 750 490 580 14% Q2 vs. Q1 FY18 FY19 FY20 FY21 FY22 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 9: Regional Installed Base H1
FY22 REGIONAL INSTALLED BASE H1 TOTAL INSTALLED BASE NEW INSTALLED BASE BY QUARTER NORTH AMERICA 20,990 23,480 24,680 12% in 12 mos. Total installed base up 12% in last 12 months and 5% in last 15,620 18,570 5% in 6 mos. 650 650 570 790 590 610 3% Q2 vs. Q1 480 6 months. Currently at 41% 410 of
Slide 10: North America – Upgrades H1
FY22 NORTH AMERICA – UPGRADES H1 Developing strong momentum in capturing upgrade value. NORTH AMERICA UPGRADED UNITS G R O W IN G O PPOR TUNI T Y 380 170 11% 60 7% H1 H2 H1 5% FY21 FY22 4% 1 yr 2 yrs 3 yrs 4 yrs 5 yrs 6 yrs 7 yrs 8 yrs 9 yrs 10+ yrs 533% vs. PCP 124% vs. Prior Half NORTH AMERICA
Slide 11: Financial Results Review
FINANCIAL RESULTS REVIEW Nanosonics Limited | Half Year Results 2022 11
Slide 12: Global Revenue H1
FY22 GLOBAL REVENUE H1 H1 H2 $60.6m T O T AL R E V E NUE Global, $m Total revenue for the half year 100.1 103.1 was $60.6 million, up 41% 84.3 compared with the prior corresponding period. 60.7 51.6 60.0 $60.6 41% vs. PCP 43.6 % vs. Prior Half 30.7 1 40.7 48.6 43.1 30.0 FY18 FY19 FY20 FY21 FY22
Slide 13: North America – Revenue H1
FY22 NORTH AMERICA – REVENUE H1 H1 H2 $54.4m T O T AL R E V E NUE North America, $m North America total revenue for the 90.1 89.2 half was $54.4 million, up 47% on 76.5 PCP and up 4% vs prior half. 54.4 46.5 52.3 $54.4 47% vs. PCP 39.4 % vs. Prior Half 27.2 4 37.1 43.7 36.9 27.2 FY18 FY19 FY20 F
Slide 14: Europe and Middle East – Revenue H1
FY22 EUROPE AND MIDDLE EAST – REVENUE H1 H1 H2 $3.4m T O T AL R E V E NUE Europe and Middle East, $m Europe and Middle East total 7.2 revenue for the half was $3.4 million which was down 6% on 5.2 PCP and the prior half. Key driver 3.6 6% vs. PCP was reduction in capital revenue 3.8 $3.4 % vs. P
Slide 15: Asia Pacific – Revenue H1
FY22 ASIA PACIFIC – REVENUE H1 H1 H2 $2.9m T O T AL R E V E NUE Asia Pacific, $m Asia Pacific total revenue for the 6.7 half was $2.9 million which was up 11% vs PCP and down 29% on prior half. 4.0 4.7 11% vs. PCP 4.1 3.3 2.1 2.3 $2.9 29% vs. Prior Half Prior half included a one-off sale of 1.8
Slide 16: Operating Expenditure and Profit Before Tax
FY22 H1 $42.7m OPERATING EXPENDITURE Global, $m 70.8 The company continued its 63.2 Q4 investment in its strategic growth agenda with operating 42.6 49.2 20.3 42.7 29% vs. PCP expenses of $42.7 million, up 13% vs. Prior Half 29% on prior corresponding period and up 13% compared with H2 FY21. FY1
Slide 17: Free Cash Flow and Cash
FY22 H1 $(3.8)m FREE CASH FLOW Global, $m 20.9 Total free cash flow for the half year was a net outflow $3.8 6.2 5.9 million, driven mainly by capital 2.6 expenditure associated with the new corporate headquarters. -3.8 FY18 FY19 FY20 FY21 FY22 H1 $92.0m CASH AND CASH EQUIVALENTS Global, $m 96.0 as
Slide 18: Profit and Loss Summary H1
FY22 PROFIT AND LOSS SUMMARY H1 FY22 FY21 Change % FY21 Change % HIGHLIGHTS $ million H1 H1 (v. H1FY21) H2 (v. H2FY21) • Revenue of $60.6 million, up 41% on prior corresponding period (40% in CC*), and up 1% on Capital revenue 19.0 9.4 102% 17.3 10% prior half. Consumable/Service revenue 41.6 33
Slide 19: Revised North American Sales Model
REVISED NORTH AMERICAN SALES MODEL Nanosonics Limited | Half Year Results 2022 19
Slide 20: End-to-End Customer Experience
Nanosonics has the capability and experience to provide an end-to-end customer experience ensuring a smooth transition to the revised capital reseller / pass-through sales model. INVENTORY & WAREHOUSING × Consume existing inventory 20,000 sq ft logistics facility then no inventory holding + Expand
Slide 21: Trophon Value Opportunity
TROPHON VALUE OPPORTUNITY In addition to managing a growing installed base, Nanosonics strives to deliver continuous value over the lifetime of trophon by driving improved compliance with HLD standards. Initial installation Upgrade YEAR 8 14 CAPITAL & ACCESSORIES CONSUMABLES & SERVICE ... trophon
Slide 22: Investing for Growth – Research & Development
INVESTING FOR GROWTH RESEARCH & DEVELOPMENT Nanosonics Limited | Half Year Results 2022 22
Slide 23: New Product Development
NEW PRODUCT DEVELOPMENT During the first half, INVESTMENT IN R&D Global, $m Nanosonics 15.6 17.2 continued to invest 9.9 11.4 8.8 9.6 $10.7 41% vs. PCP 11% vs. Prior Half in its product 5.2 5.9 expansion strategy. 4.6 5.5 6.8 7.6 R&D investment FY18 FY19 FY20 FY21 FY22 H1 increased to Progress c
Slide 24: Looking Ahead
LOOKING AHEAD Nanosonics Limited | Half Year Results 2022 24
Slide 25: Our Strategic Priorities
“Nanosonics’ forward- Provide awareness Ensure customers looking growth agenda TROPHON AS Support establishment of and education to highlight risks of have a positive STANDARD experience with all continues with OF CARE national guidelines. cross contamination for all semi-critical aspects of the pro
Slide 26: FY22 Business Outlook
“Despite the inherent risks and uncertainties associated with COVID-19, we remain optimistic the shift from pandemic to endemic management measures from H2 FY22 will improve market conditions enabling further capital and consumables growth.” – Michael Kavanagh FY22 BUSINESS OUTLOOK (assuming the pos